The comparable rent is one of the key factors in appraising vacant properties, as it aims to determine an estimated rental value that reflects actual market conditions, rather than relying on individual estimates. This mechanism relies on technical standards and approved guidelines that ensure fairness and transparency, while taking into account the property’s characteristics and surrounding conditions.

The Concept of Fair Market Rent
Fair market rent is the estimated rental value of a property, determined based on the prices of similar properties in the same area, taking into account the location, property type, size, level of finish, and surrounding market prices.

How to Determine Fair Market Rent
This value is determined by specialized technical committees, in accordance with approved standards and regulations aimed at ensuring fairness and transparency in the assessment. Furthermore, the determination of the fair market rent does not depend on the price set by the owner, but rather on the fair rental value based on market conditions.

Objectives of Adopting the Fair Market Rent
The regulations rely on the fair market rent because it helps to:
Achieve fairness in the valuation.
Link the assessment to actual market conditions.
Take into account price differences between regions.
Ensure that the fee calculation is based on the true operational value of the vacant property.